Tesla’s board has established a special committee to evaluate CEO Elon Musk‘s compensation, potentially leading to a new stock options package, according to a report by the Financial Times on Wednesday.
According to a newspaper report citing multiple sources familiar with the situation, a two-member committee has been formed, consisting of Tesla board Chair Robyn Denholm and independent board member Kathleen Wilson-Thompson.
Tesla has yet to respond to Real Watcher’ request for comment, which was made outside of regular business hours. Denholm and Wilson-Thompson also failed to provide comments when approached for their input.
According to the Financial Times, the committee is set to explore alternative compensation methods for Musk regarding his previous contributions should Tesla’s 2018 pay package not be restored via a court appeal. The report further indicates that any new stock options would be contingent upon the company achieving specific financial, operational, and share price benchmarks.
A Delaware court annulled Elon Musk’s 2018 compensation package, which was valued at more than $50 billion, in a ruling issued in 2024. The court found that Tesla’s board’s approval process was flawed and did not adequately protect shareholders’ interests.
In March, Musk initiated an appeal challenging the order, asserting that a lower court judge committed several legal missteps in overturning the substantial compensation package.
Tesla finds itself at a pivotal juncture as Elon Musk, the company’s largest shareholder with a 13% stake, redirects attention from the previously promised affordable electric vehicle platform to the development of robotaxis and humanoid robots. This strategic shift positions Tesla increasingly as a player in the AI and robotics sectors rather than solely as an automaker.
In a recent announcement, the electric vehicle manufacturer revealed that its board has established a special committee to evaluate certain compensation issues related to Musk, though specifics remain undisclosed.
Tesla announced that it would be filing its annual proxy statement later than anticipated, citing the board’s yet-to-be-determined date for the upcoming annual shareholder meeting.
The filing is usually submitted several weeks prior to the annual meeting.
Earlier this month, Denholm refuted a report from the Wall Street Journal claiming that board members had contacted multiple executive search firms to find Musk’s successor.
